Small MDR fee unlikely to dent UPI volumes, says RBI Governor

RBI Governor Sanjay Malhotra has downplayed concerns over the impact of merchant discount rate (MDR) fees on UPI transaction volumes. "As of now, we do not see any drop in volumes. And I don't personally think that a small fee will have a major impact on the volumes," Malhotra said.

The RBI's comments come amid industry discussions on potential fee structures for digital payments. The Governor's statement suggests the central bank believes UPI's growth trajectory will remain resilient even with modest charges introduced.